Skip to main content

tv   Mad Money  CNBC  July 31, 2014 6:00pm-7:01pm EDT

6:00 pm
good fuse buy srx. >> buy blackberry for the bounce. >> i'm melissa lee, watch foreman at 5:00 more "fast money." meantime, "mad money" starts right now with jim cramer. my mission is simple. to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now! hey, i'm cramer him welcome to matd money. welcome to cramerica. other people want to make friends, i'm just trying to make a little money. my job is not just to entertain you but to educate and teach, call me at 1-800-23r5e7-cnbc. this too shall pass, how, when? this i thought about today, dow
6:01 pm
plummeting, s&p plumbing 2%. nasdaq nosediveing 9%. i mince for the words about buying opportunities in the show. i like to buy discounted merchandise. today is no different. whenever my charitable has cash, we have oodles right now. we are looking for something to buy, something we've waited for, something we can circle back to or maybe average down into. the problem is with the down day in the file, these buying opportunities are hard to find. here's what i want to do. i want to give you the checklist of how frustrating it is as a portfolio manager to find at the very people a stock that's not too risky, especially if the sell-off isn't done and there are certainly plenty of geopolitical reasons to think it isn't over. none the least of which we are down from the highs despite the craziness happening around the world.
6:02 pm
first, i want to buy something that's down, really down i want prices slashed. not just a couple of points from the high. that, okay, makes me look immediately at the industrials. so many of these stocks are down 10% or more from their highs. that's intriguing to me, but there's a problem. most of the industrials are down because they have big business in russia where uncertainty looms large by the sanctions put on russia or they have huge exposure to foreign currencies getting weaker versus the dollar as foreign money flees to this country as a safe haven. that means tear earnings will be hurt in the future. solet go, let's drill down. let me show you exactly how hard it is. let's take 3m. they just reported a terrific number. i love this company. the ceo he's got it.
6:03 pm
fabulous growth. not much overseas. trust sold it higher. tempting? i don't know. it's nearly a $141 stock down five points from its high. not my definition of a discount second it has that strong dollar thing hurting against it. it could make people feel less comfortable. third the world has gotten so uncertain investors will choose national industrials first. then they discover they shot the wrong man later. it says wait before you do this. how about ppg down 16 today? wow, chuck fudge, good manager. this is a sensational coming down 14 points straight line after reporting a fantastic quarter. what is all great about that quarter? you go over the notes after we have the ceo. much has come from better sales and earnings, what happens if they cut off the pipe to europe because putin wants to respond to all the sanctions? 50% of europe's natural gas
6:04 pm
comes from russia. won't that slow europe, hurt the rebound? yeah, that could make you want to buy ppg later. what about honeywell? they put up a spectacular quarter. with we had the ceo on here. he sounded strong. he pointed to aerospace, it might be in grutton stocks. the latter could be hurt because airlines use a big amount of titanium. what happens if russia bans titanium exports? plus the stock is down 6 cents from the high. when ity of sanctions, i mull things over here, i debate who will be hurt the most? i stumble on basf, a gigantic producer based in jaempblt half of the plastic it makes comes from gas product. hmm. is there an american competitive opportunity here?
6:05 pm
yes. dow chemical has been at the forefront of using natural gas the cheapest in the world, united states natural gas. i like that edge. because despite the safety trade that includes buying the dollar and u.s. launch, interest rates are headed lower even if you think they should be higher given that 4% gdp number we got yesterday. dow chemical yielded 10%. another competitive advantage and dow has an activist, dan lowe, a powerful smart money manager, who is pushing management to change maybe a break. sure, 51 dow is not down that much from its 54-high. however, it just reported a turbulent quarter. if i weren't for this geopolitical madness, it would be much higher. voilla, i found something to buy. we can happily buy more if it goes lower, because the dividend yield will protect your investment some what did the trust do when the market was down a couple? buy, buy, boy. dun. now, what object the rest of the
6:06 pm
market? tech a big sector. financials are not down very much today and rates are going lower, not higher, with i is bad for the earnings tech. tempting. these companies have big sales if europe. >> that could hurt the numbers. maybe that's too good? we just got fantastic earnings from facebook. i love that. i try try never to boy the basis. microsoft has been intriguing, remember that great quarter? i like that. it's only off 40 cents today. intel, barely down. even 'nasdaq the 2%. i need a discounts. i heard them talk about the iphone 24r50u67 iphoi6 about to launch. down from its high, micron tempting down 6. wait a second, a 60 second
6:07 pm
decline. they say the d-ram capacity the principal product coming online, they are probably ready to sell. how about the soft good trades? i always bot the food and drug stocks if economic chaos. people have to eat and take their medicine. however, they reported a really nasty number. kellogg, so dit kraft, who has layer. all the good biotechs are taken, they're ready for highs. pass. well, i love the oils, my favorite big cap oil. what do you push endlessly? world dutch, opportunity? for the, up 1.36. not buying it up on a down day, exxon, hrnlgs wait a second, shed $4.35, no, domestics? they trade with western texas intermediates, the price of oil is plunging, up $2.5 bucks
6:08 pm
thanks to the stronger dollar. that yield rallied off the exceptor real estate investment trust. it needs to come down, t-mobile's desire the take share. how about t-mobile, itself? a good quarter the stake. i know. restaurants, retail, best near the 52-week high, worst two dangerous to own. how about my dooms day list with the most aggressive buy backs with that cushion? time warner, cbs, huge buyer of stock. inner public the advertising firm the ceo said ad rates are soft in general. dyson, disney down $2 bucks, are you kidding? i can continue to take off groups endlessly, go over and over. i think you see the.. will is not much to like yet with all the uncertainty abroad accepting those that deserve it. the best of the best are still high. sure, i might miss a chance, absolutely. this could have been maybe the bought testimony at the end of the day. yet again, that itself why i was
6:09 pm
picking dow chemical for the trust. here's the bottom line. you want to know my approach the charitable trust is buying dow, nothing more. at least until you boy lower levels. once again, i think patience will be rewarded. i want to go to art in pennsylvania. art. >> how are you doing? >> a tough day. i'm doing fine, how are you? >> good. i want to say, i love your show. i love your books, you are awesome. >> you are terrific. i signed 800 last night. water up? >> awesome. my question is with regards to russia and ukraine in the news, what down about ford versus gm and how they will be doing in the future? >> you know, phil lebeau who is unbelievable said the other day he was doing research, thinking there is like an inventory bill. the stocks have been terrible. ford is down since they reported. general motors has all those issues, my charitable trust, very tempting. i don't hate the group and i don't like the group. i don't love the grown-up.
6:10 pm
that's kind of luke-warm, you know what, i got to wait for lower prices, i know the day is rough. hang in there, until we see lower levels, my trust isn't buying much. trust me, patience will be rewarded. "mad money" tonight. worried about the mess in ukraine. tonight i got your protection, i'm heading far east. my top three kleinese internet games, buffalo wild wings wasn't enough to satisfy wall street's ravenous appetite. heart of time's square, see what they have to say yet. plus, russia has more oil than most places on the planet. bp has a lot at stake. i'll find out what the ongoing instability could mean for tear bottom line when i talk to the ceo. stick with cramer. .
6:11 pm
if energy could come from anything?. or if power could go anywhere? or if light could seek out the dark? what would happen if that happens? anything.
6:12 pm
in a we believe outshining the competition tomorrow quires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present.
6:13 pm
female announcer: you'reduring sleep train's triple choice sale. for a limited time, you can choose to save hundreds on beautyrest and posturepedic mattress sets. or choose $300 in free gifts with sleep train's most popular tempur-pedic mattresses. you can even choose 48 months interest-free financing on the new tempur-choice, with head-to-toe customization. the triple choice sale ends soon at sleep train. ♪ sleep train ♪ ♪ your ticket to a better night's sleep ♪
6:14 pm
on a hideous day, you know me, i think it's worth pointing out there are some positive areas in the market that worry about the mess in the ukraine or the potential peaking of the u.s. economy. what can still work? how about the big clean thine i chinese internet stocks? hear me out. maybe china a safer than you think. first of all the ipo of ali baba, it is now right around the corner. as this company is planning to come public in late summer or early autumn. i think the ali baba deal is going to be huge and more important i think it will highlight something that's changed and changed dramatically of late. so it used to be the chinese ipos were downright dangerous, now we have seeing larger legitimate offerings, especially in the technology space performing very well. excuse me.
6:15 pm
so ali baba's ipo about to shine a spotlight on china's internet stocks, i think it's worth getting ahead of the curve, highlighting our three place, stocks investable. they represent a powerful long-term theme the rise in ecommerce, people's republic, let's remember, 46% of the people have internet access. that figure is declining rapidly. my three favorites, buy shop holdings in jd.com. all of which i believe will get a boost when ali baba comes public. let's start with the company it's the longest online retailer. vipshop, mostly via a flash sale business money, check it out. you can hook it up. every day they announce a new sales event. a powerhouse of goods, cosmetics, otherwise dow
6:16 pm
products. each of which lasts for five days. you foe what, i like to think of vipshop as the chinese version of tj max. except it's all spun over the web. this is a terrific business model. china is very faer from well developed. there is huge demand for these discounts, very few places to actually find them. china doesn't have big off price bricks and mortar resale chains like we do. to compete against, the footballs are tremendous. when vipshop reported in may, they had 7.4 million customers. the company's revenue soared 126%, earnings more than quadrupled. yes, earnings, the may be the fastest grower out there in excess of 100%. the new model margins are steadily expanding, vipshop has eformous opportunities. accommodate rising customer demand and gradually moving to
6:17 pm
new markets i can long congress. now, this stock is up good. it's rallied 29% since may. i just gave a $6 pun 31 pullback today. i think it trades at 42 times earnings. >> that may sound like a high multiple. it's nothing like the growth rate. rapid fire revenue growth, real earnings and a relatively keep stock, what is not to like? something you get tomorrow or monday, maybe things kind of shaky out a little here. next up, j.d.com. it's the number one chosen direct sale, it came public this past may. it's the most amazon likable. ali baba has a marketplace where they take a small cut of every transaction. j.d.com sells merchandise -- j.d.com sells directly to consumers. they sell consumers at a higher price, just like amazon, j.d. sells at a discount to ballistic
6:18 pm
i bricks and mortars. like amazon, j. d. has enormous growth potential. it rolls out new businesses, like their own online marketplace division. the similarities don't end there. like amazon, j. d.com is also not that profitable. >> that said, the growth here is pretty darn fast. while the stock rallied and rallied, as of today, i think you could have more upside going for them. there is the last but not least the baidu. this is the chinese google. of all the chinese internet stocks, baidu is a real company with real interest with real earnings. i've liked them for ages, for years, this was the only one i'd recommend with an actual investment, no at trade. baidu has a gain since the bought testimony in 2009. baidu is perhaps the most obvious way to play the
6:19 pm
explosive growth of the web in the people's republic. the company is the leading chinese language internet search provider. remember, they don't even have to compete with google. they would compete over freedom of speech issues. dadi baidu is all about ship. baidu is all over this transformation. latest proposal, they account for 30% of the revenues and the search traffic in china, amaze, basically baidu is as close to a mind share monopoly as can you find. it's not just search. they have a whole ecosystem, maps, map store and all which are getting traction. baidu is a sophisticated player. they have an integrated bidding program, according to which device. what time of day it is what the user is actually doing at the time he or she sees the ad. baidu trades 26 times next year's earnings stills.
6:20 pm
>> that is cheap. bottom line, remember that every sell-off could be a buying opportunity as long as you pick the stocks you tow could bounce back. these chinese internet names will get a big boost, a big one. i think vipshop and baidu are worth buying into this current weakness, why don't we go to kingsberry in massachusetts. >> caller: water going on in kingsbury, massachusetts. >> imi'm under the desk. >> caller: i called about tesla an hour ago. i'm calling about a different stock, rng, ringcentral, their earnings expectations, they boat them on ties. i wanted to see what you think about going long on the stock. >> holy cow, ringcentral, talk about one i don't know i got to learn. i think you got the beat on the doreen thing, you've intrigued me. i will be all over ringcentral
6:21 pm
in the future. all right. we swam in a sea of red today, for the denying, losing sell-off to buy stocks to buy back. what i'm interested in is these internet plays in the republic of russia. there is still more mad money ahead. the stock may have gotten clipped. with football season right around the corner, you missed beer, wings i got the ceo from time's square. i'll talk politics and profits with the head of the oil giant. plus, is there hope? i'm scouring the stores to see if it has the ingredients for a comeback. stay with cramer.
6:22 pm
6:23 pm
6:24 pm
shltsdz . what are we supposed to do with buffalo wild wings after yesterday's vicious $22 or 14% sell-off in the wake of a strong quarter that wasn't quite strong enough for wall street, especially because the guidance paid many worried the growth could be slowing. hey, there is a tough one. the beer and wings chain has been the ultimate growth stock. any concept is going to beak. if they saturate their own markets. buffalo wild wings is in 25 locates, while the growth pay be far from over. i think it behooves us to go
6:25 pm
over it with a fine tooth comb. fortunately, i got to speak with sally smith earlier today. take a look. >> sally, we're here alt your new store in manhattan. it's obviously a rooftop multiple levels. is this the new template. >>. >> it is. we call it our stadia design. i'm glad to have you here. we talked about this. this is our new stadia design. when a guest walks through the door, we want them to feel they're in a stadium. the games are on, we hear the cheering. we want it to be their place. >> how reputable around the united states? >> all the companies on the 2014 have the stadia look, we are going back. stores are due for a new model. we are able to bring much of the decor the feel into our as we remodel restaurants. >> you have always taken a long term approach. the stockmarket is a tougher game. it's so short-term oriented than
6:26 pm
90 years ago. all the way up to 150. suddenly people say, wait a second, they reported a quarter. i thought it was the best quarter you ever had. >> we had a phenomenal quarter. >> would you do the conference call over if you had a chance? >> you know, we really provided information we thought we needed to get out there. we lad a great quarter. i think we're recognized for having a great quarter. we actually did up your guidance and said we could reach 30% year over year fet growth on income. expectations were a bit higher. i know the stock had run up in the week before earnings, which are not dissimilar to other quarters. we tend to have a lot of volatility around earnings and as you mentioned, i am all about the long term. the company is. how do we continue to sustain phenom' fal growth and deliver for our shareholders? >> so when we read headlines you were imploying fairly poddest growth, that's kind of a bit of a subdued way to be able to
6:27 pm
explain you are for a long-term measured growth? >> we r. i would rather make the right decision today for three to five years out than just to try to keep driving the bottom line for the wrong reason. it is all about sustained long-term growth. >> all right. you have always been i think somewhat, i would say conservative about the number of buffalo wild wings. you got a 1018. there are 4,9 fine title institutions of college in the country. isn't every one clamoring for a buffalo wild wings? >> you know, that's the great thing. they are. we think we are testing a small foot print for smaller towns with a draw of 20,000 people. i like that number, 4500, title 9 institutions. so maybe that will be our rallying cry. >> there was talk in a conference call how your strategy has not given you a return on vechlt it's not like you said, this is making you a
6:28 pm
for kuhn, can you subscribe to viewers why overall it is important? >> sure, if you think about when you go to the restaurant, you want to be greeted, seated. you want your beverage order taken, you want your food. we have so much more happening at buffalo wild wings, people want to sample the sauces. you go if, you want to see a game that isn't showing. we feed to change the channel. it takes the server off the game we'll are you there. the guest experienced captains help you make a great experience, make sure you see what you want to see, sit where you want to sit. holding tables for you. we will have the successfully rolled out in all of our company locations by october this year, so we have accelerated a little bit t. restaurants that are really have the guest experience model nailed are really helping drive our same store sales. >> let's talk with the guests. i love this notion of what game is on. i think there is a belief that your business is a little more cyclical oriented towards games that come on.
6:29 pm
i think that longer term what happens is people come for world cup. then they realize this is a fun place to watch all sports. from world cup and twitter, we feel like, well, everybody went on twitter, world cup stage. the truth is a world cup event is a way to introduce new people to buffalo wild. >> that's exactly what we think happened at buffalo wild wings. one of the things we did with regard to the world cup, we invested in labor, to make sure that first time examiner or guest will have a great experience. now they'll think about us if they want to hold their nfl draft parties. they are visiting another city, they want to see their team play and so we have an any game anywhere promise to our guests. if you walk in, and you are not in new york city and you are in california, you can see the yankees if you want to watch them. >> all right. i like the technology, there is a game system technology, infoization and social media. what's buffalo wild wings doing to stay ahead of the other guys?
6:30 pm
>> well, i think that, you know, kind of the level setting is the ability to order on tablets, order, you know the menu, choose your what you want to order and eventually pay on a mobile device. we're doing that. we are also, though, again, trying to foster that spirit of competition, so we have a new app breaking in mid-or early september called game break. you as the guest will be able to access us on your phone, on our tables in store and it's all about football in september. but we'll have other games that you can play again for that spirit of competition and people like coming in when they're watching the games, you are tied to your phone, why not be tied to the buffalo wild wings app? >> your liquor selection has gotten big, another what i regard past time in america is to sample beers. your beer selection is bountiful, working? >> it absolutely is. we have seen this growth if kraft beers, not only kraft,
6:31 pm
imported beers as well. people want to try something new. they may not choose to have the second beer. they may go back to their favorite for that sec beer. they want to be able to say, yes, i tried that. you should try it. it's great. tear friends are talking about the new beer they tried. they want to join the conversation. beer is huge. we have put an emphasis on quality and selection. >> all right. let's go back to the growth issue. i feel that you've got saudi arabia, united arab emirates, philippines, three in mexico. i think a lot of people feel this model worked all over. is the portfolio sis, tow, fill in the united states first before you blow out the international? >> i said a couple things, yes, we will continue our strong growth in the united states with remarching to 1,700 or perhaps 4500. we're franchiseing international and the key there for us is to find that great partner, who can replicate buffalo wild wings. if you are and we got some great partners in mexico. if you were in mexico in the
6:32 pm
world cup, you would not have known you were in the united states, it is on fire. they celebrated soccer as much as we did in the united states. we think that can replicate around the world. >> speaking of franchise, there is a labor ruling, about unionization, of which unions can be able to go into franchises. is there something at buffalo wild wings has to worry about? >> i think we will wait to see what happens in the courts. franchisesing is a great modem. it's a great mode el or the business person. people have an opportunity to own their own business and franchiseing works. i think that franchisors have never had control over the labor practices and so, you know, am i aware of it? yes. am i worried about it, for the. >> minnesota ground zero for the higher minimum wage. >> it is. >> is yours nationwide or are you doing a case by case? >> we are watching minimum wage increases, we will factor that in. i think technology will help us
6:33 pm
manage labor better. it's just a fact of life and something that we'll deal with along with every other restaurant company. >> okay. one of the things i think people were concerned longer term, is that they're trying to physical out whether there's 56 if california, texas 90, pennsylvania 18. how quickly could you double california? double texas if double pennsylvania? and i know that that's not the way you think, you are not trying to physical out how to double the state. how do you deal with that tension between the growth that wall street wants and the growth that you know is three, five, ten years? >> i think we've panged that really well. i would rather pick the right site for ten or 15 years than the wrong site to me a football. so doubling, i think we have been doubling our number of units probably every three years i think is the number. so what i like about the fact that we have 56 in california is there's tremendous growth opportunity there for us. >> last question. no one talked about the pizza
6:34 pm
initiative. i know one goes to two. you did increase the amount of money into it. ing is we should be looking into? or is eight three, five year now? >> i think one of our growth strategies is investing in small emerging brands, our first investment, the additional dollars were a part of their agreement at the beginning. they're using that to grow their company stores. we've also opened our own buffalo wild wings if minneapolis the second one is ready to open. they started opening locations, i am excited about pizzarev. it's great long term. >> i think, people at home should peck e recognize you are thinking longer term even if the stock goes down 20. i think ma what'ss is the long time provenlgs thank you very much. sally is the president around ceo of buffalo wild wings. >> jim, thank you very much. it's always a delight to be on
6:35 pm
your show. we appreciate it. >> oil giant bp is making steady progress after the gulf oil disaster. while it's tied to russia. clang the game, local powers seem to put putin in check. cramer is surveying the local landscape with the ceo. .
6:36 pm
you're driving along, having a perfectly nice day, when out of nowhere a pick-up truck slams into your brand new car.
6:37 pm
one second it wasn't there and the next second... boom! you've had your first accident. now you have to make your first claim. so you talk to your insurance company and... boom! you're blindsided for a second time. they won't give you enough money to replace your brand new car. don't those people know you're already shaken up? liberty mutual's new car replacement will pay for the entire value of your car plus depreciation. call and for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch to liberty mutual insurance and you could save up to $423 dollars. call liberty mutual for a free quote today at see car insurance in a whole new light. liberty mutual insurance.
6:38 pm
what happens when a company reports a really good quarter but it's totally overshadowed by geopolitical worries? that's the question with bp. a big london-based oil company down 7.5 yield. it reported stronger numbers. it seems just when that oil spill problem is put in the rear view mirror, at least i think so, we know bp has major exposure in russia. russia's kremlin controlled oil firm. they have the problem they can bite into the bottom line. mr. dudley, the vice president of bp. one year ago, now you are back. welcome to "mad money." are you the straight shooter from the oil industry, everyone knows that, i will quote from what you said right at the quarter. any future erosion of ross net or the impact of further economic sanctions could
6:39 pm
adversely impact our business and strategic objectives in russia. the level of income. production and reserves in russia have had a reputation. you basically laid it on the line. >> it's the right thing to do. a little overstated. >> why should i own the stock when you basically said, look, it's the kit and caboodleing here? >> we got to layout all the quarter, part of the long list of risks, we have to be open about it. >> have you spoken to putin? >> not lately. >> to ross net? >> not lately. but the relationship is good and -- we're in this business. we got to pay the dividend $700 million last tuesday. with rea very long-term business. we will be in this business four years. we have make decisions, big bets for 30 or 40 years. we saw that and we have a position in this oil project. >> you still have what almost a million barrels a day. >>. >> it's consolidated. that's right. >> you answered a question from
6:40 pm
someone that said you are a betting pan. are you in oil and gas, that's what you have to do. >> that's a part of the oil and gas business. we work if parts of the world today a loot of people wouldn't go in. we have been in 30, 50, 60 years. we haven't missed a day of production if egypt. working in iraq, we haven't missed a day of production. a big contribution, in countries like angola, asser by a sanzerb. >> do you keep the word appropriation? >> it's very, very rare. ownership of a company like rossnet. we will be around a long time. it's probably not our position in russia. >> was it a position if iraq? >> for the, i think it's just operating safely, reliably every day, those are the kind of things and getting, you know, fair and reasonable resolutions
6:41 pm
down in the gulf of mexico. >> you are a et being pan. is it going to be solved diplomatically or is there a way we haven't thought about it be involve solved. >> ukraine, is there a diplomatic solution possible? >> new day, i hope dialogue and diplomacy solves this. >> hope is not a strategy. >> i have no special insight. we are not the only company operating in russia. you look across the industry, itself, huge positions. >> total just backed away a little bit. >> well, they have an 18% ownership if a gas company there, good projects. we're not certainly alone. >> speaking of controversy, the last we spoke, i know mccondo was on your mind. it feels like it's a contained six. am i too optimistic using the word "contained?" >> a year ago we were in the early fades of what we describe
6:42 pm
as shining a light on things down there. we didn't agree in the way claims were paid. we had successes with the core. we defined how claims are being made. it's more orderly. >> meanwhile, the united states you remain a big creator of jobs. you have initiative i think is something if it were a public company, i'd be pounding the table on, lower 48. how are you going to break that out? >> we have 20,000 employees in the country from the last all the way down into the gulf. we're refining and markets. 260,000 jobs. >> do you support the military? >> we were the biggest supply of fuels in the military a year-and-a-half ago, also our debarment in the u.s., which was an issue we spoke about. that's been resolved fairly and more straight forwardly. we have separated out what we call a lower 48 group now. we are creating a second segment in the company. we will show its financials laid out. it's a large legacy projection
6:43 pm
from the amoco gas assets, about 7 billion oils if gas. we will free it up as a separate group, make it more efficient. >> it could be the post-exciting part of bp. what makes it so it will have more competitive juices if this is broken out? >> to be honest, jim, i think the shales is a manufacturing process that we, at least, as a big oil company, it's not conventional oil and gas. it's a different kind of business model to run successful shale operations. so we're going to set it off to the side, bring if new talent to it. we will unleash it. give it capital, let i di vest of some things and actually purchase other things to create a really high performing independent minded part of our company. >> you mentioned, you should have mentioned earlier, you said manufacturing, there is a lot of tech following involved. the u.s. sanctions if russia seem to be hitting at the technology that might make it that someone that is trying to drill could have some problems? are the sanctions taking a bite out of what you want to do?
6:44 pm
>> for the, not what you are doing. we have an investment in rossfet. it's almost a 5 million company a day. >> they think they have the tokenology they need, u.s., the halliburton is not there, they can get what they need? >> i think they need technology and insight. it's a big running machine. the sanctions are targeted at oil. not at gas. actually, the tech following is sort of the same in the two. >> iraq, you are fine there. you have been the most aggressive company. so far so good despite isis, water going on there? >> you have to think of the map of iraq. it is shaped as a funnel way down in the south, in the desert. unpopulated areas, we run the second largest field in the world, 1.4 million barrels a day. >> a lot of people want to be ceos, are you willing to go all the places you do business? >> doi go all the places i do
6:45 pm
business. i go to iraq, i go to baghdad, i go to ramala. >> not scared? >> i lived in moscow nine years. i go to an go la, azerbaijan. >> last question, the last time after our city, we went to the gulf. a lot of people feel the gulf is played out. you keep spending there. >> that's right. yes. >> why? >> well, when i saw you a year ago, our production was around 150,000 barrels a day. it's well over 250,000 barrels a day in yun one year. we brought projects back on. we have two gulf of mu kex mexico projects going on. last time i saw you, we couldn't bid for the gulf. we bid and we are bullish on the gulf of mexico. very committed to it and doing bes in the u.s. >> it is an amazing turn around him. you you slimmed down, you have a 3% production growth. much better than exxon. the dividend is solid. it seems like you guys have it
6:46 pm
right. maybe a little bad luck. you do seem to be getting a big turn around going on. >> it feels better in the company. one of the targets we had if 2014 is to generate $30 billion cash flow, halfway through the year, we've had 16 billion now we got our sights on 2018. >> congratulation on everything you did to turn around bp. thank you. that's the ceo of bp. what a straight shooter. mad money is back after this.
6:47 pm
6:48 pm
6:49 pm
. it is time, it is time for the lightning round. it's time to play this, then the lightening round is over. are you ready, ski daddy? we start with joe in ohio. joe. >> transfer partners. >> i like that. i know oil went to $97. it's 85% with growth. i used to be negative. it is working. now i want to go to parrian in michigan. >> hello, jim, from prefk
6:50 pm
presque ile michigan. >> a lot of people feel the aerospace cycle slowed down. i think it's pausing. they have a good alternative. it shuts down titanium. let's go to dipica if new jersey. >> caller: hi, jim. i like the kinder morgan. >> a like kinder morgan. he's a bankable 21. the stocks a come back down. buy boy buy. maybe you buy some here. put half the position on. wait until it goes under 80. sandy in new york. >> caller: boo-yah, jim. >> boo-yah, sandy. >> caller:py stock is pfizer. >> pfizer is problematic. it doesn't have a lot of growth. i think it's a steady eddie stock. i just want a little growth. i'm not getting it from that
6:51 pm
company. gary in arizona. >> hey, jimbo. >> yo-yo. >> caller: i'm upsidedown with zynga, what do i do? >> i believe if you are basic you will do well in zynga. peck in pennsylvania. >> caller: hi, jim. we love your show. >> thank you. >> caller: we wanted to ask you about cba. covafta, cva. >> liernlgs boo-yah, that's the lightning round. [ [ male announcer ] once, there was a man who found a magic seashell. it told him what was happening on the trading floor in real time. ♪ the shell brought him great fame. ♪ but then, one day, he noticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their trading platform. ♪ so the magic shell went back to being a...shell.
6:52 pm
get live squawks right in your trading platform with thinkorswim from td ameritrade. get live squawks right in your trading platform in a we believe outshining the competition tomorrow quires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present. your studied day and night for her driver's test. secretly inside, you hoped she wouldn't pass. the thought of your baby girl driving around all by herself was... you just weren't ready. but she did pass. 'cause she's your baby girl. and now you're proud. a bundle of nerves proud. but proud.
6:53 pm
get a discount when you add a newly-licensed teen to your liberty mutual insurance policy. call to learn about our whole range of life event discounts. newlywed discount. new college graduate and retiree discounts. you could even get a discount when you add a car. call liberty mutual for a free quote today at see car insurance in a whole new light. liberty mutual insurance.
6:54 pm
here's a puzzle. how do you value the stock of a company written the earnings are coming down? that's the question right now. people are asking about bole foods, what is it worth? how do you determine if it's finally bottomed? first, tow, you have to ask yourself the big question. is it worth the effort to waste the time? there are enough there to justify doing the homework and figuring things out? in the case of whole foods the answer is a definitive yes. it's a terrific operator. it's been an amazing performer over the long term. which is what matters to "mad money." ten you have to get clinical. what is going wrong with whole foods? we are well financed companies like trader joes, you name it,
6:55 pm
every single one of these companies, nay come in with guns ablazing. we all see the financial supermarkets like kroger have gotten into or began toic food and found out they can't seed this field to anyone, it's growing too fast. finally, we have to expect whole foods, itself, may be its biggest competitor as the company admits when it opens new stores, it can cannibalize its own operations, own operations? what else could be going long? pricing, whole foods have a much more competitive price is still far from being a low cost operator. it prides itself on the best stores, best help, highest quality products don't come cheap. that i have to cut price, which will hurt margins. you have the comparable store number. here whole foods is putting up very good numbers for a retailer, plus 3.9% comps we call them. they aren't good enough for whole foods, which always used to be at the top of the same
6:56 pm
store sales. as much as the stock has come down, whole foods trades at 25 times earnings. that's too high. the estimates are coming down in the future. for example, take kroger, sells at 15 times, one tiles earnings with the same store sells and earnings per share guidance is better tan not worse tan expected. you can i pay 25 times earnings when whole foods has lower same store sales the numbers are cut. the answer, can you do it if you believe the people running whole foods will make wholesale changes that can accelerate those stores again. i think maybe they are. they have a program something long been missing, second they go to national advertising, portfolio sizing the culture of whole foods, third they will emphasize product which can give them an edge over other guys, i sensed urgency here. i like that. in the end, though, here's where i come out. after all these misses, people running whole foods would admit this is a show me situation. they need one quarter to show me
6:57 pm
they can make these changes. until then, here's my suggestion. you got to wait and see. stick with cramer. come from a?
6:58 pm
6:59 pm
7:00 pm
. you can pick away at some stocks, as long as you have cash and patience and recognize the first by pay not have to be your only buy. like say there is always a bull like say there is always a bull >> from retail stores and warehouses... >> if there's a market to sell it, they're stealing it. >> ...to homes and cars. >> a $50,000 watch to a $150,000 bentley. it can be anything. >> the targets are endless for organized theft rings. >> you're not a misdemeanor shoplifter. you're a thug. you're a crook. and there's only one satisfactory place for criminals. and that's in prison. >> sheriff's office! [ all shouting ]

71 Views

info Stream Only

Uploaded by TV Archive on